TMI Blog1942 (12) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... Cyril King , K. C. and John Charlesworth JUDGMENT Viscount Simon, L.C. My Lords, in this case the Crown contends that a payment of 7,000 to the respondent by the private company named William Mathwin Son (Newcastle), Ltd., under a written agreement between them, dated October 4, 1937, was a profit from the office of director and manager of that company within the meaning of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision appealed against is right and that the present appeal must be dismissed. The written agreement of October 4, 1937, recites that Robson has for some years served the Company as a director and manager at a fixed salary with bonuses, and that his service is terminable by short notice on either side, but that his services and connection are important to the goodwill of the business. The pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... binds Robson if his service in the Company is terminated before April 1, 1942, not be concerned or interested in the business of coal exporter, coal merchant, or ship broker within 50 miles of Newcastle-upon-Tyne until April 1, 1942, is reached. Clause 7 provides that in consideration of this restrictive covenant the Company shall on the execution of the agreement of October 4, 1937, pay to Robson ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t after its termination. He is giving to the company for a sum of 7,000 the benefit of a covenant which will only come into effect when the service is concluded. I agree with the Court of Appeal in the view that to treat this 7,000 as a profit arising from the respondent's office is to ignore the real nature of the transaction. It is quite true that, if he had not entered into the agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1937. That agreement is admitted to be a bona fide contract and, so regarded, 7,000 cannot properly be treated as a profit arising from the respondent's office or employment. I move that the appeal be dismissed with costs to the respondent as between solicitor and client. LORD ATKIN.-- My Lords, I agree. LORD THANKERTON.-- My Lords, I agree. LORD RUSSELL OF KILLOWEN.-- My Lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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